To The Moon

🌟🌟👍Welcome to Investing 101: The SDR Series.  In this series we are shining a spotlight on the top picks for each country covered by the Singapore Exchange.   The Singapore Depository Receipt or SDR as it is more popularly known ,was officially launched on 30 May 2023.

The Origin Story: How It Began 

The original idea was simple: local investors were suffering from serious FOMO (Fear of Missing Out) on regional growth but did not want the headache of managing overseas brokerage accounts and multi currency exchange fees.  SGX gave them a passport to buy great companies listed overseas right here at home.

The Growth Explosion: From Local Pilot to Global Giants 

What started as a modest regional experiment has snowballed into an absolute cross border empire.  The SDR market's evolution has been nothing short of explosive:

1.  The Thailand Infant Phase in Mid 2023:

SDR trading began with just 3 initial Thai blue chips.  Investors dipped their toes, treating it like a novelty.

2.  The Hong Kong High Roller Era in late 2024:

Realising that local investors wanted high octane growth, SGX made a major pivot and plugged directly into the Hong Kong market on 30 October 2024.  This has changed the entire game.  Suddenly the biggest e-commerce and gaming companies on Earth were sitting right next to our local stocks and SReits on our trading screens.

3.  The US Tech Infusion in Mid 2026: 

By July 2026, the SGX pushed the boundary even further,  launching US listed mega caps like SEA $Sea US SDR 50to1(UGGD.SI)$  and Grab $Grab US SDR 2to1(UGBD.SI)$  , denominated entirely in SGD. 

4.  The Multi Market Megastars (Late 2026):

SGX has just announced a huge new expansion to introduce heavyweights like chip titan TSMC $TSMC US SDR 300to1(UTSD.SI)$  and South Korea's SK Hynix $SK Hynix US SDR 100to1(UNXD.SI)$   into the mix.

The data does not lie: Retail investors have completely fallen in love with this tool.  Retail portfolios hold a massive 80% plus of all outstanding SDR assets under management.  The average daily volume has tripled year over year.

The Big Number: How Many Counters Are There?

As of October 2026, the SDR platform features a total of 43 active SDR counters.  It is split across 4 dominant global hubs:  Hong Kong, Thailand, Indonesia and the US.  The SDR platform has evolved from a niche shortcut into a robust, diversified sandbox where you can construct an entire global portfolio without a single cent leaving your $Tiger Brokers(TIGR)$ Singapore Dollar trading account.

Investing 101: What on Earth is an SDR?

Think of a Singapore Depository Receipt (SDR) as a financial stunt double.  Just like the Hollywood stunt double, an SDR reflects the real time valuation of the business.  If an actual stock spikes 5% in Hong Kong due to a blockbuster earnings, the SDR on the SGX will automatically mirror that same exact 5% jump. You get 100% of the price action without ever touching the volatile foreign exchange market.

An SDR is a certificate issued locally in Singapore that mirrors the price and dividend payouts of a foreign company listed overseas.  When you buy an SDR on the SGX, a local depository bank holds the actual shares in a vault.  You own the "receipt" which sits neatly in your Tiger BBrokers account.

It is the ultimate convenience as it allows you to buy global titans without the headache of foreign currency conversion fees or opening overseas brokerage accounts.

The Pros and Cons of SDRs

Before you go shopping, you need to know the rules of the game.  Here is the honest truth about trading SDRs:

The Pros:

Bite Sized Fractional Access: 

Buy in tiny fractions, making it more affordable for retail investors.

100% Settled in SGD:

Say good bye to losing sleep over fluctuating foreign exchange rates and hidden bank conversion fees.

Local Convenience:

Trade right alongside your Singapore stocks and SReits during regular SGX hours.

Automatic Dividend Payouts:

You get your dividends in cash credited directly into your Tiger Brokers account in SGD whenever the underlying company pays a dividend.

The Cons:

The Liquidity Trap:

Trading volume can be lower especially for new SDRs, making large rapid entries or exits slightly slower.

Admin Fees:

The depository bank takes a tiny, fractional bite out of your dividends to cover administrative costs.

No AGM Free Buffet:

You do not get voting rights, so you cannot show up to the annual meeting to complain about the cold coffee.

Concluding Thoughts: The Ultimate SDR Verdict 

When you strip away all the financial jargon, ticker symbols and board lot math, investing in SDRs boils down to one simple word:  Access.

SGX is no longer just a place to buy your local Singapore shares or SReits.  It has essentially handed you a friction free, multi currency global passport.

You can build a diversified, best international portfolio featuring world class technology, manufacturing and consumer monopolies, all while keeping your assets under your Tiger Brokers account in Singapore Dollars.

You get the upside of international growth, you get the convenience of trading completely in SGD.  Those juicy international dividends land smoothly into your Tiger Brokers account in Singapore Dollars.

In my next SDR Series article, I will cover the Hong Kong SDRs with a spotlight on the best 5 counters to invest.  The Hong Kong market is currently oversold and undervalued, offering great bargain hunting opportunities for the smart investor.  Stay tuned.

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